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RedSeer, Retail News, ET Retail

New Delhi: E-commerce platforms are expected to potentially exceed $ 9 billion gross GMV (gross value of goods) during the holiday season compared to $ 7.4 billion last year, a growth of 23 %, consulting firm RedSeer said Thursday. . For the full year, global online gross GMV is expected to reach $ 49-52 billion, about 37% higher than last year ($ 38.2 billion), mainly due to strong expansion the consumer funnel and the strong adoption of online shopping. post-COVID across all categories, RedSeer said in its e-commerce holiday season report.

In the first week of the holiday season, online platforms are expected to record 30% year-on-year growth in gross GMV to $ 4.8 billion, he added.

Gross GMV refers to the total value of goods sold on the platform before subtracting the cancellation or return.

“The growth will be primarily driven by the accelerated online adoption which has been seen as an effect of COVID. Second, cities of level II and beyond will continue to drive growth as they represent 55-60% of the base. ‘total buyers this year, similar to or greater than 57% in 2020 festive days, “Mrigank Gutgutia, associate partner at RedSeer, told reporters.

On the other hand, as offline retail and mobility almost recover to pre-COVID levels, this will impact online festive selling as customers can also opt to shop offline, he added.

In terms of categories, mobile will continue to dominate – driven by new launches – and will account for 11% of gross GMV ($ 4.8 billion) in the first week of festive sales.

The electronics and appliances category will continue to grow (from 14% of festive sales last year to 16% this year), thanks to ever-expanding selection and reach, and consumers holding back their purchases (earlier in year) in anticipation of new launches and attractive prices (according to the Redseer survey), Redseer said.

Affordability constructs including EMI and Buy Now Pay Later (BNPL) are expected to be a powerful lever for growth in this category, he added.

Fashion, as a category, is also expected to experience a steady recovery this holiday season – in line with greater outdoor mobility of consumers and a constant rebound in fashion / office wear, RedSeer said.

The report found that sellers are very bullish on this year’s sales and are looking to recoup losses incurred due to COVID.

Almost 80% of vendors surveyed said festive sales would play a key role in recovering losses from COVID.

“We believe 2021’s online festive sales will continue to benefit from the favorable winds of greater digital consumer adoption, supported by increasingly positive macro and consumer sentiment following the passage of the second wave of COVID. . At the same time, we are seeing a strong uptrend of sellers towards festive sales online, as around 80% of them believe that festive sales will allow them to generate strong sales growth and make up for losses during the COVID period. Said Ujjwal Chaudhry – RedSeer Consulting Associate Partner.

Driven by the above, RedSeer expects strong 30% year-on-year growth in festive sales week in 2021 to reach USD 4.8 billion gross GMV with growth in all categories, and set the stage for a solid year for e-commerce in 2021, he added.

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